Tax Department presents $38M FY27 budget, flags VITAX upgrade and continued property‑tax modernization
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Summary
Tax Department leaders told the House Appropriations Committee the all‑funds FY27 budget is about $38 million, with 90% for salaries/benefits and IT. They highlighted VITAX (Gentax) upgrades, continued property‑tax modernization, pilot fund projections, and customer-service metrics including timely refunds and call volumes.
The Vermont Tax Department presented its FY27 budget highlights to the House Appropriations Committee on Jan. 29, describing a roughly $38 million all‑funds budget and several modernization initiatives intended to improve service and reduce administrative burden.
Bill Shouldice (identified in the transcript as the tax commissioner) and Andrew Stein, the department’s chief operating officer, described priorities that included employee engagement, data security, continued property‑tax IT work, and upgrades to the VITAX tax system. Stein said the department’s all‑funds budget represents a 2.34% increase from the current fiscal year and that about 90% of the budget goes to salaries, benefits and IT operations.
Operational context: Stein said the department collected more than $3 billion in revenue in 2025 and processed over 115,000 phone calls with an average wait time of about 1 minute and 5 seconds, shaving roughly 21 seconds off prior averages. The department also reported issuing 95% of timely‑filed refunds within 45 days for the fourth consecutive year, a metric the department says reduces interest costs and improves service.
Modernization work: The department reviewed ongoing property‑tax IT modernization that began in 2020, describing it as complex and "bumpy" in places; leaders said upgrades remain essential. Stein said the VITAX upgrade to the latest Gentax version and associated code modernization will provide new functionality — including, officials said, a withholding flow for childcare contributions that could reduce large end‑of‑year reconciliations once fully implemented.
Programs and funds: The department discussed the pilot fund (projected below $12.2 million in the current year per their analyst), homeowner rebate appropriations and an increase to the renter credit tied to inflation. Stein noted the department is working with the Joint Fiscal Office on methodology for these program projections. The department also described municipal current‑use payments (more than $70 million in current use value was cited) and how the funding flows between general and education funds.
Next steps: Committee members asked for more granular budget numbers and clarifications on specific program projections; the Tax Department said it would supply additional spreadsheet detail referenced during the presentation. No formal committee vote was taken at the conclusion of the presentation.